Bri Posted June 2, 2021 Share Posted June 2, 2021 Small non-PBGC cash balance plan used a 12/31 valuation date. Froze 3/31/20, terminated 5/31/20, assets all out on 8/12/20. So I'm prepping final report and SB for actuary to sign ahead of 6/15 extended deadline. Is 8/12 an okay valuation date to use? Assets and liabilities both zero at that point since everyone was paid (final assets were just a residual dividend liquidated to pay fees). Don't want to switch to 1/1/20 because we'd have to assume folks would be hitting 1000 hours and getting a new contribution. 5/31 valuation date would obviously require more review of the numbers the software spits out. Thanks. -Bri Link to comment Share on other sites More sharing options...
Mike Preston Posted June 2, 2021 Share Posted June 2, 2021 Why can't you use a 412 D2 election? That should allow the 1 1 valuation to come up with zero cost. Link to comment Share on other sites More sharing options...
Effen Posted June 3, 2021 Share Posted June 3, 2021 Not disagreeing with Mike, but 8/12 would definitely NOT be ok. The plan didn't exist on 8/12/20 since it was terminated on 5/31/20. I think your val date would be 5/31. The material provided and the opinions expressed in this post are for general informational purposes only and should not be used or relied upon as the basis for any action or inaction. You should obtain appropriate tax, legal, or other professional advice. Link to comment Share on other sites More sharing options...
Bri Posted June 3, 2021 Author Share Posted June 3, 2021 Thanks, guys - I think we're going to go with the 1-1 date and acknowledge the amendment to eliminate the NC, just to avoid a mid-year valuation date that ties to the termination date but not the end of the short plan year. A valuation reflecting zero benefits and assets did seem a little *too* easy! Link to comment Share on other sites More sharing options...
Calavera Posted June 3, 2021 Share Posted June 3, 2021 For automatic approval it's either 1/1 or 5/31 Link to comment Share on other sites More sharing options...
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